Inflation in the US in August has reached 8.3% per year compared to the estimated 8.1%, Bloomberg reported on Tuesday, citing data from the US Department of Labor. From the agency they added that the consumer price index increased by 0.1% compared to July.
Following the announcement, the price of bitcoin has fallen by nearly $1,000 to $21,758 per unit, according to data from Bloomberg Markets.
Bloomberg notes that due to rising inflation, the US central bank, the Federal Reserve, could raise short-term interest rates by 0.75 percentage points for the third consecutive time.
The US Federal Reserve already raised benchmark rates in May and June, amid its struggle to curb a historic rebound in inflation. However, forecasts suggest that the institution will increase its reference rate to 3.4% by the end of this year, and to 3.8% by 2023, the highest level since the end of 2007.
The federal funds rate, set by the central bank, is the interest rate at which banks lend and borrow overnight. Although not the rate consumers pay, the Federal Reserve's moves still affect the interest rates on loans and savings they see every day.
All of this is affecting Real Estate with high interest, Now investors must aim for lowering prices to offset the risk and holding cost due to the fact Houses are taking longer to sell.
Why? End buyers are hesitant and also think twice on getting a house at a 6% Interest Rate. So when an investor buys a house and is thinking about re selling the house he must take into consideration the holding cost meaning how long the house will stay on the market and Inflated Raw material or building products..
George has been shaking up the real estate industry for the past 5 years. He is known for being in the best mood all hours of the day. George’s favorite part of working at Homeinc is building relationships with his buyers and sellers. It gives him great joy to be able to guide sellers through the process while getting them the maximum value for their property. He also loves working with the awesome individuals in the Homeinc tribe. When George is not at the office, he enjoys spending time with his wife and children, trying out new restaurants and exploring new local spots to have some fun.
